PTC (PTC) Stock Forecast & Price Target

PTC demonstrated strong financial performance in its latest report, with total revenue reaching $894 million, marking a 39% increase year-over-year on a constant currency basis and a 43% rise in reported terms. Despite a challenging macro environment, the company achieved a 10% organic growth in European-based annual recurring revenue (ARR) and 7% growth in the Americas, showcasing its resilience and ability to capitalize on demand within the manufacturing sector. Looking ahead, PTC anticipates approximately 13.2% revenue growth for FY25, supported by robust performance in its product lifecycle management segment and the cross-selling of solutions, which highlights the company’s solid strategic position in the market.

The financial outlook for PTC appears negative due to a reduction in total revenue estimates for FY26, which has been adjusted down by approximately 0.5% to $2,798 million, indicating a struggle to meet initial guidance expectations. Additionally, the company is experiencing essentially flat year-over-year growth in net new Annual Recurring Revenue (ARR), raising concerns among investors for sustained growth in this critical metric amidst broader macroeconomic challenges. Furthermore, estimates for FY26 ARR have been trimmed by about 2.6%, reflecting potential business disruptions from divestments and reinforcing the likelihood of prolonged limited growth in net new ARR, which could adversely affect future recurring revenue growth.